Controlling Volatility Still Top of Mind for DB Sponsors

February 8, 2011 (PLANSPONSOR.com) - An SEI Quick Poll has found that, for the second consecutive year, pension plan sponsors say their number one priority for the coming year is finding a way to control funded status volatility.

Four out of five (84%) poll participants view this as a priority, with more than three-quarters (76%) identifying it as a “high priority,” making it the highest ranked priority in the entire poll.

While controlling funded status volatility came in as the top priority, providing senior management with a long-term pension strategy took second, moving up one spot from last year, with more than three-quarters (76%) of participants listing this as a top priority.

Stress-testing the portfolio to gauge its ability to withstand extreme macroeconomic environments; and

Implementing a plan design change, such as closing the plan to new entrants or freezing accruals in already closed plans.

Defining fiduciary responsibilities for trustees and investment consultants moved up two spots from last year, with nearly two-thirds (64%) of participants listing this as a priority.

The second annual “Top Priorities for Pension Plan Sponsors” Quick Poll was completed by 50 executives overseeing pensions ranging from $250 million to $10 billion in assets. None of the respondents were institutional clients of SEI.